Flashcards About ch 10 –
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complement each other.
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The balance sheet and income statement are separate reports, but actually
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income statement; balance sheet
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For any business, both the _______ and ________ are needed to determine a firm's financial position.
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a business can go bankrupt with negative cash flows even though the income statement shows a profit.
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It is important for Heather to monitor her cash flow because:
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a cash basis.
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The cash flow statement measures cash flows on
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money borrowed from others, money invested by the owners
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Bernard has just learned that on the balance sheet, the assets must equal the ___________ plus the _______________.
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accrual; cash
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Coronado cannot use the income statement as a measure of cash flows because it is calculated on a(n) _______ rather than a(n) _______ basis.
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cash flow statement
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Lucille is preparing the _____, which shows all cash receipts and payments involved in operating the business and managing its financial activities.
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cash from operations, buying or selling assets, and financing the business.
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The cash flow activities on the cash flow statement are divided into these categories
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operating
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Depreciation is added back on the cash flow statement in which activity section?
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income statement
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Walter knows the result of the equation "Sales-Expenses = Profits" can be found on the:
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debt and equity.
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Kevin wants to open his own car repair shop. To do that he will need tools and other equipment. The two methods Kevin can use to pay for these items are:
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